April 2, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Herbalife Ltd. agrees to settle pyramid scheme lawsuit brought by former salesman

Herbalife Ltd. announced Friday it had agreed to settle a class-action lawsuit brought by a former salesman who alleged the Los Angeles nutrition company was operating a pyramid scheme that victimized hundreds of thousands of people a year.

The lawsuit, lodged last year in federal court in Los Angeles, contends that Herbalife is a pyramid scheme in which the company’s independent distributors earn more money recruiting new sales people than they do selling its products.

A year ago, U.S. District Judge Beverly Reid O’Connell refused Herbalife’s request to dismiss the case, saying former Herbalife distributor Dana Bostick’s allegations were significant enough to proceed toward trial.

According to a brief statement from the company, the settlement agreement will resolve the lawsuit against the company.

“The company has been aggressively defending itself against the plaintiffs’ allegations set forth in Bostick v. Herbalife ever since the lawsuit was filed in 2013,” the company said. “Yet, the potential cost, as well as the distraction, disruption and burden of prolonged litigation on the company and its management team, led the company to decide that the terms set forth in the settlement agreement provided the best path for moving forward.”

Details of the proposed settlement were not available.

“We are fully confident that we would have prevailed,” said Mark Friedman, general counsel of Herbalife. “Settling this matter, however, is in the company’s best interest as it allows us to put it behind us and focus on the future growth of the company.”

The company also has been defending itself against activist investor Bill Ackman, who runs Pershing Square Capital Management. Ackman also has described Herbalife as a pyramid scheme.

Related Posts

County Board Approves New Homeless Agency, Redirecting Millions from Existing System

April 2, 2025

April 2, 2025

With Billions on the Line, LA County Moves to Centralize Homeless Response Los Angeles County is making a dramatic shift...

Put the Phone Down: LAPD and CHP Targets Distracted Drivers in April Crackdown

April 1, 2025

April 1, 2025

Hands-Free Law Violations Could Now Cost You More Than Just a Fine Throughout April, the Los Angeles Police Department will...

Kim Delaney, Partner Cleared After Weekend Arrest in Marina del Rey

April 1, 2025

April 1, 2025

Emmy-Winning Actress and Partner James Morgan Released Kim Delaney, the Emmy-winning actress recognized for her roles in NYPD Blue and...

(Video) Spending an Afternoon at Pacific Park on the Santa Monica Pier

April 1, 2025

April 1, 2025

Go To Pacpark.com For Tickets and More Information. Go To https://t.co/HneRcysYh5 For Tickets and More Information. #amusementpark #rides #rollercoaster #summer...

Matū Kai to Debut in Brentwood With Grass Fed Wagyu and Global Flair This Week

April 1, 2025

April 1, 2025

Farm-To-Fork Beef, Wood-Fired Flavors, and Sustainability Meet on San Vicente The team behind Beverly Hills’ acclaimed steakhouse Matū will soon...

Mid-City Freeway Death Under Investigation After Caltrans Workers Find Blanket-Covered Body

April 1, 2025

April 1, 2025

Woman Discovered on 10 Freeway Shoulder Identified; CHP Launches Probe Caltrans workers discovered a woman’s dead body around 9:00 a.m....

Community Support Saves Beloved West Hollywood Café from Closure

March 31, 2025

March 31, 2025

Packed Tables and Emotional Messages Helped Keep the Doors Open Le Petit Four, the popular Sunset Boulevard café known for...

Egg Beaters Recalled Over Possible Chemical Contamination

March 31, 2025

March 31, 2025

Massive Liquid Egg Recall Includes California Shipments Cargill Kitchen Solutions is recalling approximately 212,268 pounds of liquid egg products after...

Los Angeles County’s Measure A Raises Sales Tax On April 1, And It’s No Joke

March 31, 2025

March 31, 2025

Santa Monica, West Hollywood, Culver City, and Malibu Will See Higher Increases Starting April 1, Los Angeles County residents will...

Robbery Boast on Instagram Helps Send Beverly Hills Heist Suspect to Prison

March 31, 2025

March 31, 2025

Flashy Post, Federal Time: Smash-and-Grab Mastermind Sentenced Ladell Tharpe, 39, received an 84-month sentence from U.S. District Judge George H....

Actress Kim Delaney Arrested After Domestic Dispute; Partner Also Charged

March 31, 2025

March 31, 2025

Marina del Rey Police Arrest “NYPD Blue” Actress After Alleged Altercation Actress Kim Delaney, known for her Emmy-winning role on...

Union Workers at UCLA to Strike April 1 Over Staffing Shortages, Labor Disputes

March 31, 2025

March 31, 2025

Healthcare and Research Staff at UC to Strike, Alleging Unfair Labor Practices More than 20,000 healthcare, research, and technical professionals...

School of Rock Students Shine in Winter Performance Despite Widespread Fires

March 31, 2025

March 31, 2025

Summer Camp Registration Opens Now By Susan Payne Wildfire devastation wreaked havoc in areas of Los Angeles this January with...

Full House Creator’s Cielo Drive Estate Returns With Massive Price Drop

March 30, 2025

March 30, 2025

Franklin’s Mansion, Once the Site of the MansonTragedy, Back on Market Full House creator Jeff Franklin is returning to the...

Santa Monica, Beverly Hills See Real Estate Shifts After L.A. Wildfires

March 30, 2025

March 30, 2025

Beverly Hills and Brentwood Listings Triple in Wake of January Fires Home sales and listings have shifted dramatically across Westside...